PHFA Keystone Home Loan Income and Purchase Price Limits

The
Keystone Home Loan Program offers below market interest rates to first
time home buyers and non-first time home buyers who purchase homes in
“targeted” Pennsylvania counties.

Prospective home buyers must meet the income and purchase price limits
with this program.

Eligible properties include existing owner occupied one to two family
dwellings, including condominium units. If the property is a two unit
residence, the borrower must live in one of the units. Three and 4 unit
buildings are ineligible with the Keystone Home Loan Program.

The Pennsylvania Housing Finance Agency does not lend money directly
to prospective home buyers, but works through approved mortgage lenders
to provide first time buyer financing. You and the approved lender will
choose the appropriate mortgage (i.e. FHA, VA, USDA or conventional
mortgage). After lender and PHFA approval and settlement, your loan
is handed off to the Pennsylvania Housing Finance Agency. You will make
your monthly mortgage payment to PHFA.

Benefits of a PHFA home loan

Low interest rates - your choice between a zero point or a one point
option (the discount point reduces the interest rate).

Fewer fees. PHFA limits certain fees (closing costs)

Down payment and closing cost assistance is available for
eligible borrowers.

30 year fixed rate terms.

Eligible Home Loan Option include:

Conventional
(i.e. Fannie Mae, Freddie Mac). The conventional loan requires
a 20% down payment, however, the down payment can come as a
gift from an immediate family member (parent, sibling, child,
grandparent, aunt or uncle) or a nonprofit organization.

Down Payment and/or Closing Cost Assistance Program

The Keystone Advantage Assistance
Loan Program can be combined with the Keystone Home Loan Program
to help eligible Pennsylvania home buyers purchase a home with a down
payment and closing cost assistance loan. The Advantage loan is interest
free!

You may be eligible for a Keystone Home Loan if you meet the following
six conditions:

1. You are not a first-time homebuyer, but you
plan to buy a home in a Targeted county or area or you are a discharged
veteran of the United States Armed Forces. Target counties are indicated
by a "T" in the listing of Purchase Price and Income Limits.
Please note that some Non-Target counties have targeted neighborhoods
within them. Those areas are listed by county and census tract starting
on page three of the purchase price and the income limits above. To
determine the census tract of a specific property, visit www.ffiec.gov,
and select 'Geocoding/Mapping System'.
OR
You and all other adults who intend to live in the home within 12 months
from closing are first-time homebuyers. This is defined as someone who
has not owned (had Title to) their principal residence during the previous
three years.

2. The gross annual household income for all adults that intend to occupy
the home within one year from loan closing does not exceed the
Keystone Home Loan Income Limits.pdf. All sources of income must
be included, except for income received by persons under age 18 and
income received by dependants enrolled in a full-time undergraduate
program.

3. The purchase price of your prospective home does not exceed the
Keystone Home Loan Purchase Limits.pdf. This includes all costs
for a complete home. It is also known as the total acquisition cost.
The appraised value of land owned outright for more than two years does
not need to be included.

4. You have an acceptable credit history and the ability to make monthly
payments on the home you expect to buy. Generally, you should plan to
use no more than 30 percent of your income for your monthly mortgage
payment. A participating lender or PHFA network counseling agency can
help you determine how much of a home you can afford, as well as any
credit issues you may need to work on.

5. You have sufficient funds to pay standard mortgage application and
closing fees. These would commonly include such things as credit reports,
appraisals, title fees, etc.

6. You have sufficient funds for a down payment on your prospective
home. Borrowers who have a down payment of less than 20 percent of the
home’s purchase price or appraised value are required to obtain mortgage
insurance to protect the lender and PHFA in the event that the mortgage
becomes delinquent (you fall behind on your payments). The amount of
the down payment differs according to the loan type as listed below.

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How much does it cost to buy
a house in Pennsylvania?

Use the
PA mortgage calculator to estimate the down payment, closing
costs and monthly payment for FHA, VA, USDA & conventional
loans.

The calculators and information contained herein are made available to
you as a self-help tool for illustrative use only. Examples are hypothetical.
We can not and do not guarantee the applicability or accuracy in regards
to your individual circumstances. I encourage you to seek personalized advice
from qualified professionals.